Implications of Non Payment
Lenders follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by phone or letter to rearrange payment, remember that non-payment can lead to extra charges and increased interest rate which eventually affects your credit score. It’s important that you read the lender’s website’s charges section before finalising the loan.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates affecting your credit score. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan to renew your loan. You will most probably be charged the same rate of interest and fees for the next month on the entire loan amount. The loan renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
Frequently Asked Questions
How much does it cost to use SME Loans?
Nothing! It is 100% free to use SME Loans to find a loan provider. We pride ourselves on matching successful small businesses with loans that will help them grow, there are no hidden charges and all quotes are no obligation.
Does my small business qualify?
The eligibility criteria will depend on which small business financing product you choose. To apply, your business will need to be VAT registered, meet the minimum monthly turnover and some providers may stipulate that you have at least two years of filed accounts.
How will I receive the money?
Once you have agreed on the loan terms and conditions, the money gets directly transferred into your bank account - sometimes on the same day that you apply.
How much interest will I pay?
There are lots of factors that will determine how much interest you are expected to pay back on your loan. The type of loan, amount of money and loan repayment period will all influence the interest rate you are quoted by a lender.
What does APR mean?
Although we haven't touched on APR, chances are you'll have come across this term as you search for your business loan. APR stands for Annual Percentage Rate. This refers to the total interest you will need to pay annually on the loan amount. The lower the APR, the lower your monthly repayments will be.
How do repayments work?
The repayment structure will depend on which product you choose. You can generally repay unsecured loans over a period of 1-24 months in simple, fixed monthly instalments. For secured loans the repayment period is usually longer